01 May Question: NAFTA-NAFTA will soon be replaced by a new trade agreemen
NAFTA-NAFTA will soon be replaced by a new trade agreement between the U.S. and Mexico. Evaluate the exchange rate-trade effect around NAFTA’s inception in 1994. Answer the questions below.
- Discuss how the bilateral trade balances between the U.S. Mexico
- have changed pre- and post- NAFTA. (Hint: trade deficit or trade
surplus?)
- How has the $/peso exchange rates changed from 1990 to 2001?
- Comment on the appreciations and depreciations of both currencies,
pre- and post-NAFTA.
- Discuss possible linkages between NAFTA and the trade balance
between the U.S. and Mexico.
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